242 Cities Now Have $1 Million Starter Homes: California Leads

Published July 15, 2026 · 3-minute read
Zillow reports that 242 U.S. cities now have a typical starter home valued at $1 million or more, nearly triple the number recorded in early 2020.

The headline is dramatic, but the details matter: Zillow defines a “starter home” as a property in the lowest third of local home values. The million-dollar threshold is concentrated in a small number of high-cost markets, with California leading the list.

California accounts for 105 of the 242 cities

According to Zillow’s June 2026 analysis, California has 105 cities where the typical starter home is worth at least $1 million. That is down slightly from 106 a year earlier, but more than double the 52 California cities counted in February 2020.

• San Francisco metro: 37 cities
• Los Angeles metro: 33 cities
• San Jose metro: 13 cities
• New York metro: 63 cities

Nationwide, the count rose from 226 cities a year earlier and 80 cities in February 2020. Zillow also found at least one million-dollar starter-home city in 26 states, compared with nine states before the pandemic.

Most starter homes are nowhere near $1 million

The national typical starter-home value in Zillow’s analysis was $198,649, up 1.7% from a year earlier. That makes the million-dollar examples notable outliers rather than a description of the entire U.S. entry-level market.

Even within California, a metro label does not mean every community or property type carries the same price. Condominiums, townhomes, smaller single-family homes and properties farther from job centers can have very different pricing, insurance, tax and homeowners-association costs.

What first-time buyers should compare

• Total monthly cost: principal, interest, property taxes, homeowners insurance, mortgage insurance and any HOA dues.
• Cash needed: down payment, closing costs, reserves and near-term repair expenses.
• Property type and location: the least expensive ownership path may not be a detached home in the buyer’s first-choice neighborhood.
• Time horizon: expected length of stay can materially affect whether buying makes financial sense.
• Financing fit: conventional, government-backed and eligible assistance options should be compared using the same purchase assumptions.

A buyer should not treat a citywide “typical value” as a loan quote or an estimate of what they personally can afford. Prequalification still depends on income, assets, credit, debts, property details, program rules and current pricing.

Bottom line: Million-dollar starter homes are becoming more common, but they remain heavily concentrated in high-cost communities. California buyers may need to widen the geography, compare property types and review the full monthly payment, not just the list price.

This article is for general educational purposes only. It is not financial, tax or investment advice, a rate quote, a commitment to lend or an assurance of approval or savings. Loan programs, pricing, terms and eligibility are subject to complete review and lender approval.